Company says inherited debt load too much to sustain

The Lincolnshire-based company said it began reorganization proceedings in U.S. Bankruptcy Court in Delaware in what it hopes will "result in significantly reducing the company's debt burden." RathGibson reported nearly $320 million in debt and assets of $305 million as of April 30.

"The current management team inherited a significant debt load that cannot be sustained, particularly in these challenging financial markets," RathGibson Chief Executive Mike Schwartz said in a statement.